May 20, 2010

The Value of 1 Rupee in Indian Market

Of late, the value of money (rupees) is decreasing, as the inflation and other fiscal activities are striking the Indian economy. In the current scenarios, the value of 1rupee is losing its ground in Indian market, where there are limited options to contain the price rise or inflation in economics terms.
Few years back, people used to quarrel with the auto driver, vegetable vendor or with any one to get back 1 rupee in the market. It seems the value of one rupee note or coin is decreasing these days as even beggars don't take if you offer them.

If you think that you can't buy a single thing with 1 rupee then you're wrong. Here it indicates that the perception of the people might have changed towards the value of one rupee in Indian market but 1 rupee holds it major role in shaping Indian economy.

There are many products available in the market, those can be purchase with one rupee viz., matchbox, toffees, chewing gums, local beedis, water packet, xerox copies etc., Now companies are providing small sachets of products like Shampoo, Sauce, different spicies or curry powders which come under 1 rupee price tag. Comapnies like Dabur, Perfetti and Candico are investing more capital to create different candies under one rupee.

The Bollywood stars like Salman Khan(who promoted the 'Choloromint' candy) and Kajol(who promoted 'Alpenlibe') also endorsing these products through advertisement. Candico is now the largest confectionary industry in India and its covering 18 other countries too. So you can

guess how large this market is!

Not only in products, but also in services also the 1 rupee market is big. In some cities of India you can use public toilets or you can make a phone call with one rupee from STD or PCO centers. Tata Docomo lunched the new concept tariff plan for the Indian mobile subscribers, where you can pay by paisa/sec and now other Telecom companies are also using the same concept to attract users.

From my point of view these products or services will never loose their existence even if the cost of living in India raises to a higher extent. As all these products or services are quite necessary in our day-to-day life, so neither these products nor their values will be extinct and the 1 rupee market will strengthen its root in the Indian Economy in the days to come.